SWOT Analysis
There are many different ways to analyze a company that you are considering investing in. While some methods used ratios and other numerical values to help you determine whether or not you should invest, others allow you to analyze a company by considering non-financial factors.
One method that I believe to be useful when you are first looking at the company is SWOT analysis. Standing for Strengths, Weaknesses, Opportunities, and Threats. By analyzing these four factors, it is easy to get a solid understanding of the company’s foundations and current position within the larger market. While I assume that we can all agree that using just one method to inspect a company is a poor idea, SWOT analysis is a good one to do if you want to get a firm grasp of the company’s current position.
The classic yet effective way to analyze a company!